DSE trading records 10 per cent growth

Daily trading on the Dar es Salaam Stock Exchange (DSE) has recorded a 10 per cent increase last year, according to the Capital Markets and Security Authority (CMSA).

That means that compared to the previous year, there was a positive trend that indicates the sector and its contribution to the national economy grew.

"Essentially, capital markets fuel economic growth by providing an avenue for alternative source of cheap financing to productive sectors of the economy," CMSA Public Relations Officer Charles Shirima told the 'Daily News' yesterday.

He said the daily average number of shares traded increased from 703,934 in 2010 to 775,529 in 2011, depicting that there were more transactions at the DSE compared to the previous year.

He said that in terms of market capitalization, there was a 20 per cent growth in 2010 from 4,924.53bn/- to 5,926.60bn/- in 2011, "This change depicts that the size of the market grew in terms of new listings as well as appreciation of the listed securities."

In the same period, Mr Shirima said the value of shares traded at the DSE increased from 53bn/- in 2010 to 55bn/- in 2011, recording a four per cent rise that projected positive trends in terms of value of the shares traded.

The stock market indices appreciated from 1,170.80 in 2010 to 1,264.49 in 2011, an eight per cent appreciation, said the spokesperson, adding that in terms of listed equity securities there has been a slow growth since 2010, with only two firms cross listed.

The Nation Media Group and Africa Barick Gold Company were only cross listed, with one IPO from Precision Air Services.  However, the same period witnessed the delisting of NICOL from the DSE for non-compliance with the continuous listing obligations for listed companies.

On debt securities there was a notable increase of 63 per cent on government bonds recording a change from 562bn/- in 2010 to 918bn/- in 2011. There was one new listed corporate bond from Exim Bank. 

Mr Shirima said low liquidity remains among some challenges facing the capital markets in the country.

Source: The Daily News,http://www.dailynews.co.tz

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